A One-Year Call Option Has a Strike Price of 50

question 42

Multiple Choice

A one-year call option has a strike price of 50, expires in 6 months, and has a price of $4.74. If the risk-free rate is 3 percent, and the current stock price is $45, what should the corresponding put be worth?

• A) $12.74
• B) $10.48
• C) $5.00
• D) $9.00
• E) $8.30